The U.S. office market has seen a slight improvement, with the overall vacancy rate dropping to 18.8% in the third quarter. Leasing activity is up, driven by financial services and technology firms. Construction is at its lowest in over a decade, signaling a potential turnaround in the market.

CEO of BXP, Owen Thomas, believes the market has hit bottom and sees positive signs ahead. Lower interest rates are attracting capital back to office real estate, particularly in high-end buildings and desirable locations with access to mass transit. Premier buildings are outperforming the rest of the market.

BXP is focusing on new development projects, such as a $2 billion project in New York City. Mayor-elect Zohran Mamdani’s impact on real estate is cautiously optimistic, with a focus on housing affordability and public safety. New York City’s office conversions to residential units serve as a model for other cities.

Read more at CNBC: BXP chief says the office sector is overbuilt